Sunday, September 25, 2011

Nifty - A long term view

View from the monthly chart for the Nifty shows a congestion zone developed in 2009 between 4700 and 5300 approximately. This gives a message: the 4700 area has held for many months in 2009. If, and, of course, this is a big IF - the 4700 support cracks we could expect a free fall in the Index.

Chart below:

2 comments:

rohit said...

Sir free fall till where, because I see it stopping somewhere around 4100-4300, because in may 2009 when we moved from 2500 to 4000 up in a straight line, everyone said that the gap would be filled but it was never filled, and last month on tv a respected technical analyst said that that was a breakout gap and it will never be filled, meaning that we will find support anywhere between 4300 to 4650 which was his view. Also Sir I have heard this from many technical analysts including you that sometime in the next 5 years the sensex will be at 40000 how do we predict that in such volatile times, also Sir please give us some education on how to trade options, because although what we feel may be right but we may still lose money in options, how do we decide the right price while buying an option.

Nirav said...

Sir,

I think if Nifty goes below 4700 then next support area will be 4500-4550. At this level Nifty has faced many resistance and support in past.

I have showed it in my blog http://marketswings.blogspot.com/

Thanks.